If the marginal propensity to consume is 0.5, the income tax rate is 10%, and income rises by $20,000 . by how much will consumption spending increase?
a. $15,000
b. $10,000
c. $5,000
d. $9,000
e. $1,000
D
You might also like to view...
Profit is the return to entrepreneurship
a. True b. False Indicate whether the statement is true or false
In terms of an economic contribution, building a football stadium
A. has been shown to be futile. The team leaves anyway. B. with public dollars has never been shown to enhance a community's economy. C. to attract a team has always been a successful strategy in growing an community's economy. D. to keep a team that would otherwise leave has always been a successful strategy in growing an community's economy.
The elasticity of supply of product X is unitary if the price of X rises by:
A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied stays the same. D. 7 percent and quantity supplied rises by 5 percent.
Assuming the effect of a specific outcome being tested is zero is known as
A. regression discontinuity. B. a zero-sum game. C. a statistical anomaly. D. the null hypothesis.